Why Berachain (BERA) Price is Rallying 35% Despite $900M liquidations in BTC, ETH and SOL

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Updated
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Highlights

  • Berachain surged 35% amid a market crash, fueled by its PoL mechanism, rising TVL, and strong community support resisting panic selling.
  • Berachain acted as a safe-haven asset last week, attracting liquidity while Bitcoin and altcoins struggle; macroeconomic risks may further boost investor interest.
  • Technical indicators signal bullish momentum, with $8 support holding; a breakout above $9 could propel BERA toward key $10 and $12 targets.

Berachain price retraced 8% to $8 on March 1, after booking 35% gains in the last three days of February. The impressive rally came amid a broader market downturn, making BERA one of the best-performing assets of the week. Here are three key market indicators that drove Berachain’s price surge and what to expect in March 2025.

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Berachain (BERA) Emerges Standout Performer amid Crypto Market Crash

Despite major sell-offs in global financial markets last week, Berachain’s price action stood out. On February 28, as Bitcoin plunged below $80,000 for the first time in four months, BERA surged 35% to weekly timeframe peak $9, in stark contrast to major assets like Ethereum (ETH), Ripple (XRP), and Solana (SOL), which all hit new 2025 lows last week.

Macroeconomic fears, particularly new tariffs announced by Trump’s administration, spooked investors and triggered over $879 million in leveraged position liquidations on February 28 alone. Most altcoins followed Bitcoin’s lead, suffering double-digit declines, yet BERA defied this trend by gaining 35%, rising from $6 on February 25 to $9 by February 28.

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Why Is Berachain (BERA) Price Going Up?

Several factors contributed to Berachain’s resilience and impressive price performance last week.

  • TVL Surge from Yield-Seeking Investors

Berachain’s ecosystem showed notable strength through its Total Value Locked (TVL), which remained above $3 billion, peaking at $3.32 billion, according to on-chain data. This stability was driven by its Proof-of-Liquidity (PoL) mechanism, where users stake BERA to earn governance tokens (BGT) and provide liquidity, securing high annual rewards of up to 18%.

Berachain TVL, March 1, 2025 | Source: DeFiLlama
Berachain TVL, March 1, 2025 | Source: DeFiLlama

Unlike traditional staking models, PoL incentivizes active capital deployment, creating a flywheel effect that kept liquidity flowing even as other projects suffered capital outflows. Data from DeFiLlama indicated an additional $150 million in deposits within 24 hours, pushing TVL to $3.3 billion by March 1. Historically, a rising TVL correlates with upward price action, suggesting more potential upside for BERA.

  • Recovery from Airdrop Backlash

Berachain’s price trajectory post-launch also supports its bullish outlook. After its February 6, 2025, mainnet debut, BERA soared to $14.99 before crashing to $5.57 by February 11, as users reacted negatively to airdrop distribution.

However, by February 19, it had rebounded to $6.60—a 31% recovery—driven by growing TVL and broader ecosystem traction.

The network has since attracted 5.18 million active wallets and holds a stablecoin market cap of $930 million. This positive momentum likely carried into late February, positioning BERA as an outlier amid the market crash. X users noted Berachain’s “uncorrelated” nature, suggesting it acted as a safe-haven asset while Bitcoin and Ethereum collapsed.

  • Strong Community Influence

Berachain’s meme-driven, tight-knit community, originating from the Bong Bears NFT project, played a key role in its stability.

Unlike other projects that rely heavily on institutional backing, Berachain’s grassroots movement has built an investor base that is less influenced by broader market panic.

On social media, X users praised BERA’s resilience, calling it an asset that “copes extraordinarily well” during Bitcoin downturns.

This unique identity, combined with strong fundamentals and DeFi integrations such as Infrared Finance, helped sustain investor confidence when fear gripped the wider crypto market.

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 Can Berachain Extend Its Gains in March?

In summary, BERA price rally last week was driven by its PoL-driven ecosystem maintaining TVL stability, a price rebound from a prior bottom, and strong community backing insulating it from panic selling. Additionally, its fundamentals shone amid market chaos, positioning it as a refuge for capital exiting riskier assets.

With tariffs on Canada and Mexico set to begin on Monday, BERA could receive further capital inflows if the market starts the week on a bearish note. If macroeconomic conditions worsen and Bitcoin struggles to regain momentum, Berachain may continue attracting liquidity from investors seeking a more resilient crypto asset.

Berachain Price Forecast: $12 breakout ahead if $8 support holds

Berachain price forecast suggests a potential move toward $12 if the $8 support level holds firm, as the Bollinger Bands (BB) and Bull-Bear Power (BBP) signal continued strength. The price is currently testing the mid-BB level at $8.16, aligning with short-term support. If buyers maintain control above this zone, upside momentum could accelerate toward the upper BB at $8.93 before challenging $10 and, ultimately, the psychological $12 mark.

Berachain Price Forecast
Berachain Price Forecast

Volume analysis reveals declining bearish pressure following a 9.31% retracement, while BBP remains positive at 0.869, reflecting lingering bullish control. A decisive move above $9 with strong volume confirmation could trigger a fresh rally, mirroring the prior 34.91% surge in just three days. The risk, however, lies in a breakdown below $8, which could expose Berachain to the 50-day moving average near $7.57.

For now, Berachain’s bullish structure remains intact, with consolidation at key levels suggesting accumulation rather than weakness. A confirmed breakout above resistance could see momentum traders driving the next leg toward $12, provided market sentiment remains favorable.

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Frequently Asked Questions (FAQs)

1. Why did Berachain (BERA) surge 35% while the crypto market crashed?

Berachain’s price jumped due to strong TVL growth, resilience from its PoL mechanism, and a supportive community that helped maintain investor confidence.

2. What is Berachain’s price forecast for March 2025?

If the $8 support holds, Berachain could rise toward $12, with key resistance levels at $9, $10, and $12, based on technical indicators.

3. Is Berachain a good hedge against Bitcoin volatility?

Berachain’s recent performance suggests it can act as a safe-haven asset, attracting liquidity when Bitcoin and major altcoins decline.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.